Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision (EU) 2017/784 as regards the period of authorisation for, and the scope of, the special measure derogating from Articles 206 and 226 of Directive 2006/112/EC on the common system of value added tax taken by Italy
- Italy discovered significant VAT fraud related to supplies of goods and services to public authorities and implemented a system of split payments, where VAT due is paid to a separate blocked bank account of the tax authorities.
- This derogation from the VAT Directive was authorized until 2023.
- Italy also introduced electronic invoicing and the transmission of data on daily charges to combat tax fraud and evasion. These measures have replaced other control measures and allowed for cross-checking of operations and monitoring of VAT payments.
- The latest legislative changes aim to simplify compliance and prepare regular VAT assessments. Once fully implemented, there should be no need for further derogations.
- Italy considers that the split payment mechanism and the mandatory electronic invoicing have presented synergies that have resulted in a significant reduction of VAT fraud and therefore should continue to coexist, given that the split payment is a tool to prevent fraud, while the electronic invoicing is a tool to detect fraud.
Source eur-lex.europa.eu
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